Sugar group Roxas Holdings Inc. (RHI) on Tuesday said that its net income dropped by almost a fourth for the first nine months of operations, because of start-up problems in its alcohol operations and lower sales of the sweetener.
In a disclosure to the Philippine Stock Exchange, RHI said that its net income for the three quarters ending June 30 reached P304.1 million, 21.1 percent lower compared to the P385.7 million registered a year ago.
Also, net income for the third quarter of its fiscal year dropped 46.2 percent to P99.3 million from last year’s P184.91 million.
The company recorded revenues of P3.979 billion for the three quarters of fiscal year 2012 to 2013, or 31 percent lower than the P5.8 billion for the same period last year due to lower export sales.
Consolidated raw sugar sales for the period amounted to P1.3 billion while refined sugar sales totaled P2.235 billion. These came from alcohol and molasses sales, and refining services.
Meanwhile, cost of sales amounted to P2.8 billion as of the third quarter, a 38-percent drop from the last year’s level of P4.4 billion. This is due to lower sales, lower production cost and lower cost of buying raw sugar.
“Sugar accounted for the bulk of the group’s net limited micro financing income for the period at P496 million, while alcohol operations recorded net loss due to start-up problems,” said Renato Valencia, RHI president and chief executive officer.
For the three quarters of the current fiscal year, the RHI recorded an earnings before interest, taxes, depreciation and amortization, or Ebitda, amounting to P1.3 billion compared to P1.2 billion for the same period last year.
Meanwhile, the RHI declared cash dividend of P0.06 a share as of record date of August 30, 2013, and payable on September 16, 2013, and also granted an employee stock option plan to its eligible employees, by offering 35 million shares, or about 2 percent of its authorized capital stock of 1.5 billion shares.
“The stock plan will encourage employees to develop a sense of ownership and to share in the profits of the company,” RHI Executive Chairman Pedro Roxas said.
“This provides eligible employees an opportunity to increase their financial/asset base over a period of time with a generous way of paying off the shares,” he added.